(PhysOrg.com) -- Dell engineers are in the process of developing a pocket handheld device for browsing the internet. Dell plans on using the Google Inc.'s Android software and may also use chips based on designed licensed from ARM Holdings PLC, according to the Wall Street Journal's sources.
Two people who saw early prototypes, of the handheld device, said the device as slightly larger than Apple Inc.'s iPod Touch, which is similar to the iPhone but does not have cellphone capabilities.
The pocket web gadget has been in the planning stages since last year when Dell aborted another project in an attempt to compete with Apple's music-player business. Dell may begin selling the device later this year, though the person, at Dell, said the plan could be delayed or scrapped entirely.
Dell has felt the strain of the spending slowdown, which has hammered sales to consumers and businesses. Dell has suffered, in the past few years, in the sales of desktop PCs and network storage equipment.
Dell has also been developing smartphones that would be powered by Android. The Dell smartphone rumor first surfaced in January. If the Wall Street Journal is correct then it sounds like Dell plans to take on both the iPhone and the iPod Touch using Google's smartphone operating system.
A person that is familiar with Dell's plan said that Dell may be considering selling the product through cellular carriers, much as Hewlett-Packard and other computer makers have begun marketing low-end portable netbooks through cellular providers.
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